Has anyone paid estimated tax to IRS with a Vanguard or similar brokerage account?

Forum|Forum|1 year ago
January 4, 2025
3 replies
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IRS only takes credit card or Bank account for payment. Is there a workaround or way to pay them from Vanguard?

In the past I would move funds from Vanguard to a bank account and then pay estimated tax to IRS.

Any new hope for me please?

Best answer by VolvoGirl

You would have to ask Vanguard. You might be able to pay from a money market fund or the settlement fund in a regular account (not a IRA, 401K or retirement account). Why do you want to change from your bank account? I would keep doing it the same way as before. You will probably still have to do sales to get the cash to pay the IRS which will be taxable.

xmasbaby0

Employee

You have not mentioned what specific transactions you are doing with your Vanguard accounts---for many transactions, such as retirement account distributions, etc. you can have Vanguard withhold the estimated tax and send you the rest of the money. Talk to Vanguard so they can explain to you.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

davejAuthor

paying estimated tax before Jan 15. I would like to use my Vgard money market account that I can wire or ACH from and do regularly.

IRS says only CC or bank. Vanguard is not a bank. Anyone have an answer please?

DoninGA

Employee

@davej If you can write a check from the money market account, then it will have a routing number and an account number just like a check from a standard bank checking account.

VolvoGirlAnswer

Employee

guywong

I know it can be done with both Morgan Stanley and Fidelity Investments.

Fidelity provides a routing transit number and an account number for IRS and State ACH debit. on its website The only downside is that there is no Document Locator on the Fidelity monthly statement. All it shows is DEBIT IRS USATAXPYMT for both balance due and ES taxes paid.

Both Morgan Stanley and Fidelity provide checks for the CORE account. The checks contains both the routing transit and account numbers.

davejAuthor

Great ideas Thank-you all ! I will call Vanguard tomorrow and post their response.

I do not like the wire idea because of the form the IRS says to use.https://www.irs.gov/payments/same-day-wire-federal-tax-payments Looks like a good way to get into trouble. On the IRS site it says they are really backed up.